FOR IMMEADIATE RELEASE
July 29, 2009
It is time for America’s small businesses to unite and take ACTION!
Los Angeles, CA – In a recent national address, President Barack Obama boldly proclaimed that his administration’s economic stimulus package was working. Meanwhile, small businesses in middle class America struggle to simply keep their doors open. Despite thousands of business closures during the last several months, the mainstream media has spent little time discussing the importance of small businesses to America’s economic vitality. Our nation’s political leaders routinely recognize small business as the backbone of our nation’s economy, but to date small businesses have largely been left out of efforts to stimulate America’s economy.
America’s 27 million small businesses generate more than $6 trillion in annual revenue and collectively account for more than half of our nation’s Gross Domestic Product (GDP). U.S. Census Bureau data indicates that companies with less than 20 employees account for 90 percent of all U.S. firms and are responsible for more than 97 percent of net new jobs.
When small businesses thrive, our economy grows. Yet today, millions of these businesses are being threatened by the very plan that was supposedly intended to help them. The president’s stimulus package, rather than providing aid to small businesses is diverting resources to save mismanaged corporate giants.
Congress earmarked a mere 1.9 percent of the initial $789 billion stimulus package to assist small businesses. Worse yet, to date, less than ½ of 1 percent has been distributed to small businesses. The irony of this is that in the long run small businesses will bear the burden of paying nearly the entire tab for this extravagant spending package and receive almost NOTHING in return.
The new administration is taking capital and revenue from the mouths of America’s small business owners and feeding it to the big national banks, greedy Fortune 500 CEOs and Wall Street executives. This theory enraptures Wall Street, yet alienates Main Street. Even the Small Business Administration (SBA) is led by venture capital vipers who are licking their chops at a chance to infiltrate and dominate federal programs designed for small businesses.
The SBA was planning to guarantee $20 billion in loans during fiscal year (FY) 2009, yet it is currently on-track to reach half of that mark. Loan programs like the ARC [America’s Recovery Capital] have been purposely structured so that few small businesses can qualify and banks literally have little motivation to lend. Even more disconcerting, every year, billions of dollars in federal contracts intended for small businesses are diverted to Fortune 500 corporations and other clearly large firms. Since 2003, more than 15 federal investigations found fraud, abuse, loopholes and a lack of oversight have led to widespread abuses in federal small business programs. The American Small Business League (ASBL) has estimated that every year up to $100 billion in federal small business contracts are diverted to corporate giants.
On top of this, small businesses are facing a hike in taxes for those earning more than $250,000, limits on itemized deductions, higher dividend taxes and shouldering more responsibility for worker health care.
While the Fortune 500 corporations have an army of lobbyists in Washington, small businesses are on their own. For this reason, it is more important than ever that small businesses unite. Regardless of political affiliation or industry association something needs to be done to stop this insane, wasteful spending spree. The ASBL and the Small Business Hour Radio Show are urging small business owners to make their voice heard. They collectively will be working together to shine a brighter light on issues facing America’s 27 million small businesses, and to help the small business community organize a more powerful unified voice. To participate in this united movement towards change, please listen to the Small Business Hour with Mark Deo at www.smallbusinesshour.com and become a supporter of the ASBL by visiting http://www.asbl.com/joinasbl.html.
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Lloyd Chapman, President of the American Small Business LeagueA vocal crusader for the rights of small business, Mr. Chapman is a familiar figure at the Small Business Administration and in the United States Congress, where he has continued to work tirelessly during the last two presidential administrations to prevent federal small business contracts from being diverted to large corporations. He is regularly quoted by the media on small business contracting issues. He can be contacted at www.asbl.com
Mark Deo, Host of the Small Business Hour. Mark Deo is a small business advocate, author, journalist and business owner. For 12 years he has been the host of CBS radio’s, "The Small Business Hour." He has been voted "Journalist of the Year" by the Small Business Administration; his weekly radio show can be heard at www.smallbusinesshour.com.
Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Wednesday, July 29, 2009
Tuesday, July 28, 2009
Who Are the Real Small Business Advocates in America?
Can Legitimate Small Business Groups be Funded by Fortune 500 Firms?
By Lloyd Chapman
President, American Small Business League
Can an organization claim to represent the interests of small businesses and never lift a finger to stop the most highly publicized issue affecting small businesses for the last eight years? Can an organization funded by Fortune 500 firms truly represent small businesses?
In 2002, I convinced the Government Accountability Office (GAO) to launch the first federal investigation into the diversion of federal small business contracts to large corporations. In February of 2003, David Cooper, Director of GAO's Acquisition and Sourcing Management Office, told Washington Technology magazine that the GAO launched its investigation based on "information Chapman provided." (http://washingtontechnology.com/Articles/2003/02/20/Smallbusiness-deals-under-investigation.aspx?Page=1)
That first GAO investigation has prompted over a dozen other federal investigations and private studies into the diversion of federal small business contracts to Fortune 500 firms and thousands of other large businesses. (http://www.asbl.com/documentlibrary.html)
In 2005, the Small Business Administration Office of Inspector General (SBA OIG) released Report 5-15, which assessed the magnitude of the widespread fraud and abuses in federal small business contracting programs. Report 5-15 described the diversion of hundreds of billions of dollars in federal small business contracts to many of the largest companies in the world as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
Since the results of that first GAO investigation were released in May of 2003, over 500 stories in the media have covered the issue. Every major newspaper in the country has reported on the problem. Dozens of magazine articles have covered it. It has been on every major television network, including: ABC, CBS, CNN, FOX and CNBC. Finally, the diversion of federal small business contracts to corporate giants has been discussed in more than 400 radio interviews by the American Small Business League (ASBL) staff.
Over a dozen federal investigations, more than 500 stories in the media over eight years, and over $100 billion a year diverted from small businesses and firms owned by women and minorities; surely any group that claims to represent small businesses, women or minorities must have done something to address a problem of this magnitude.
I challenge anyone to even find this issue mentioned anywhere on the websites of any so-called small business organization. Try and find any evidence of any effort to halt the fraud and abuse against legitimate small businesses. Virtually every national organization that claims to represent small businesses is actually funded by the very Fortune 500 firms that have hijacked hundreds of billions of dollars in federal small business contracts. Now that is a staggering conflict of interest. Many of these Fortune 500 firms have even lobbied to close the SBA and end all federal programs to assist small businesses and firms owned by women, minorities and veterans.
Some of these sham groups will attempt to tell us that their members don't care about this issue. Quite the contrary, try and find a single legitimate small business in America that thinks Fortune 500 firms should receive federal small business contracts.
Here's the truth; the ASBL is the only national organization that has fought to bring an end to the diversion of hundreds of billions of dollars in federal small business contracts to Fortune 500 firms and hundreds of other large businesses. The ASBL is the only national small business group that does not take money from Fortune 500 firms or big businesses. We only fight for small businesses.
We provided the information that prompted the investigations. We filed the lawsuits that forced the release of thousands of pages of government data proving that Fortune 500 firms have received billions of dollars in federal small business contracts. We prompted the overwhelming majority of stories in the media on this issue. We have fought the SBA, the White House, the Pentagon and Congress as they have refused to adopt legislation and policy to halt the rampant abuses. And now we are the only small business organization in America that has successfully had legislation introduced into Congress to finally halt the diversion of federal small business contracts to corporate giants. The passage of H.R. 2568, the Fairness and transparency in Contracting Act will bring an end to years of fraud, abuse and loopholes in federal small business contracting programs.
The passage of H.R. 2568 will also redirect over $100 billion a year in current federal infrastructure spending back to the 27 million small businesses where most Americans work. These firms are responsible for 50 percent of the Gross Domestic Product and over 95 percent of all net new jobs in America.
Don't be fooled anymore, if you want to discover who the real small business advocates are in America, look to see who funds these groups and ask who has fought to end the most widely publicized and investigated abuses against small businesses in the last decade.
If you are a small business owner, after you have discovered who the real small business advocates are, join them in their fight for American small businesses. www.asbl.com
By Lloyd Chapman
President, American Small Business League
Can an organization claim to represent the interests of small businesses and never lift a finger to stop the most highly publicized issue affecting small businesses for the last eight years? Can an organization funded by Fortune 500 firms truly represent small businesses?
In 2002, I convinced the Government Accountability Office (GAO) to launch the first federal investigation into the diversion of federal small business contracts to large corporations. In February of 2003, David Cooper, Director of GAO's Acquisition and Sourcing Management Office, told Washington Technology magazine that the GAO launched its investigation based on "information Chapman provided." (http://washingtontechnology.com/Articles/2003/02/20/Smallbusiness-deals-under-investigation.aspx?Page=1)
That first GAO investigation has prompted over a dozen other federal investigations and private studies into the diversion of federal small business contracts to Fortune 500 firms and thousands of other large businesses. (http://www.asbl.com/documentlibrary.html)
In 2005, the Small Business Administration Office of Inspector General (SBA OIG) released Report 5-15, which assessed the magnitude of the widespread fraud and abuses in federal small business contracting programs. Report 5-15 described the diversion of hundreds of billions of dollars in federal small business contracts to many of the largest companies in the world as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
Since the results of that first GAO investigation were released in May of 2003, over 500 stories in the media have covered the issue. Every major newspaper in the country has reported on the problem. Dozens of magazine articles have covered it. It has been on every major television network, including: ABC, CBS, CNN, FOX and CNBC. Finally, the diversion of federal small business contracts to corporate giants has been discussed in more than 400 radio interviews by the American Small Business League (ASBL) staff.
Over a dozen federal investigations, more than 500 stories in the media over eight years, and over $100 billion a year diverted from small businesses and firms owned by women and minorities; surely any group that claims to represent small businesses, women or minorities must have done something to address a problem of this magnitude.
I challenge anyone to even find this issue mentioned anywhere on the websites of any so-called small business organization. Try and find any evidence of any effort to halt the fraud and abuse against legitimate small businesses. Virtually every national organization that claims to represent small businesses is actually funded by the very Fortune 500 firms that have hijacked hundreds of billions of dollars in federal small business contracts. Now that is a staggering conflict of interest. Many of these Fortune 500 firms have even lobbied to close the SBA and end all federal programs to assist small businesses and firms owned by women, minorities and veterans.
Some of these sham groups will attempt to tell us that their members don't care about this issue. Quite the contrary, try and find a single legitimate small business in America that thinks Fortune 500 firms should receive federal small business contracts.
Here's the truth; the ASBL is the only national organization that has fought to bring an end to the diversion of hundreds of billions of dollars in federal small business contracts to Fortune 500 firms and hundreds of other large businesses. The ASBL is the only national small business group that does not take money from Fortune 500 firms or big businesses. We only fight for small businesses.
We provided the information that prompted the investigations. We filed the lawsuits that forced the release of thousands of pages of government data proving that Fortune 500 firms have received billions of dollars in federal small business contracts. We prompted the overwhelming majority of stories in the media on this issue. We have fought the SBA, the White House, the Pentagon and Congress as they have refused to adopt legislation and policy to halt the rampant abuses. And now we are the only small business organization in America that has successfully had legislation introduced into Congress to finally halt the diversion of federal small business contracts to corporate giants. The passage of H.R. 2568, the Fairness and transparency in Contracting Act will bring an end to years of fraud, abuse and loopholes in federal small business contracting programs.
The passage of H.R. 2568 will also redirect over $100 billion a year in current federal infrastructure spending back to the 27 million small businesses where most Americans work. These firms are responsible for 50 percent of the Gross Domestic Product and over 95 percent of all net new jobs in America.
Don't be fooled anymore, if you want to discover who the real small business advocates are in America, look to see who funds these groups and ask who has fought to end the most widely publicized and investigated abuses against small businesses in the last decade.
If you are a small business owner, after you have discovered who the real small business advocates are, join them in their fight for American small businesses. www.asbl.com
Thursday, July 23, 2009
FORTUNE 500 FIRMS MASQUERADE AS SMALL BUSINESS LOBBY
By Lloyd Chapman
President, American Small Business League
For the last seven years I have fought with the United States Government in the courts, in Congress and in the media over one simple principle, Fortune 500 firms should not be allowed to receive federal small business contracts.
I would imagine it would be difficult to find many people in America that would disagree with that principle; particularly now, as our nation struggles to deal with its worst economic downturn in 80 years. The latest U.S. Census Bureau data indicates that 98 percent of all U.S. firms have less than 100 employees. These 27 million small businesses employ over 55 percent of the private sector workforce and create over 97 percent of all net new jobs. Those same small businesses are responsible for over 50 percent of the Gross Domestic Product (GDP) and over 50 percent of all innovations.
Federal law requires that a minimum of 23 percent of the total value of all federal contracts and subcontracts be awarded to small businesses.
This all makes sense doesn't it? Small businesses create virtually all net new jobs in America. Most taxpayers work in small businesses. Aren't we trying to stimulate the economy and create jobs? What better way is there to achieve both of these goals than to spend 23 percent of federal infrastructure dollars with small businesses?
Other than the Federal government, guess who my biggest opponents have been… every major organization in America that claims to represent small businesses. I have discovered that the overwhelming majority of so-called small business groups are actually funded by Fortune 500 firms, and consequently they support the political agenda of Fortune 500 firms. Groups like the U.S. Chamber of Commerce that claim 96 percent of their members are small businesses with less than 100 employees, actually have 15 Fortune 1000 firms represented on their board of directors which have received federal small business contracts. The same thing is true for the U.S. Hispanic Chamber of Commerce. Several of the U.S. Hispanic Chamber of Commerce's corporate sponsors have received federal small business contracts. That's the real reason they are not supporting H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. H.R. 2568 was proposed on May 21 by Congressman Hank Johnson (D - GA), and would stop the federal government from counting corporate giants towards its small business goals.
The National Federation of Independent Businesses (NFIB) claims to be "the voice of small business." In reality, NFIB primarily lobbies for the political agenda of Fortune 1000 firms. Even minority and women's groups are funded by Fortune 500 firms, and take their marching orders from those firms. Groups like the U.S. Hispanic Chamber of Commerce, the U.S. Women's Chamber of Commerce, and the National Small Business Association (NSBA) are funded by big business, and push the political agenda of corporate giants in America.
If you're not convinced, lets take a look at the facts. Since 2003, a series of federal investigations have been released which found that Fortune 500 firms and thousands of other large businesses have received billions of dollars in federal small business contracts. The Small Business Administration Office of Inspector General (SBA OIG) referred to the diversion of federal small business contracts to large corporations as, "One of the most important challenges facing the Small Business Administration [SBA] and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
The American Small Business League (ASBL) estimates up to $120 billion a year in federal small business contracts actually go to big businesses.
Since 2002, the story has been covered in virtually every major newspaper in the country, dozens of magazines, and in most of our nation's mainstream media outlets including CNN, ABC and CBS. Additionally, this issue has been the subject of hundreds of radio interviews, and hundreds of stories in Internet based publications. (ABC, http://www.asbl.com/abc_evening_news.wmv; CBS, http://www.asbl.com/cbs.wmv; CNN, http://www.asbl.com/showmedia.php?id=1170)
Now, take a look at the website for any group in America that you believe represents the best interest of small businesses. Try and find any mention of the issue at any time during the last seven years. Remember, over 500 stories in the media have covered the issue along with more than a dozen federal investigations. Despite the press, the federal investigations and thousands of business closures, you won't find anything.
You won't find any press releases calling for an end to the problem on the U.S. Chamber of Commerce's website. You will not find any mention of the issue anywhere on NFIB's website. You will not find any mention of the diversion of billions of dollars in federal small business contracts to Fortune 500 firms on the U.S. Hispanic Chamber of Commerce's website. There will be no mention of one of the largest challenges facing the entire federal government today on the U.S. Women's Chamber of Commerce website. Finally, if you examine the NSBA's website, you will not find any discussion of legislation they have written to address the issue, or lawsuits they have filled to try and end the rampant abuses against small businesses.
I would advise any small business that belongs to any of these groups to quit wasting your time and money, and drop out today. You have been duped.
The irrefutable truth is that a vast majority of supposed small business groups in America are shams. They are funded by, run by and for the benefit of Fortune 500 firms. The truth is, no major small business group in America will even mention the diversion of federal small business contracts to corporate giants. Look for yourself. If you disagree, send me the proof that I'm wrong to info@asbl.com.
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President, American Small Business League
For the last seven years I have fought with the United States Government in the courts, in Congress and in the media over one simple principle, Fortune 500 firms should not be allowed to receive federal small business contracts.
I would imagine it would be difficult to find many people in America that would disagree with that principle; particularly now, as our nation struggles to deal with its worst economic downturn in 80 years. The latest U.S. Census Bureau data indicates that 98 percent of all U.S. firms have less than 100 employees. These 27 million small businesses employ over 55 percent of the private sector workforce and create over 97 percent of all net new jobs. Those same small businesses are responsible for over 50 percent of the Gross Domestic Product (GDP) and over 50 percent of all innovations.
Federal law requires that a minimum of 23 percent of the total value of all federal contracts and subcontracts be awarded to small businesses.
This all makes sense doesn't it? Small businesses create virtually all net new jobs in America. Most taxpayers work in small businesses. Aren't we trying to stimulate the economy and create jobs? What better way is there to achieve both of these goals than to spend 23 percent of federal infrastructure dollars with small businesses?
Other than the Federal government, guess who my biggest opponents have been… every major organization in America that claims to represent small businesses. I have discovered that the overwhelming majority of so-called small business groups are actually funded by Fortune 500 firms, and consequently they support the political agenda of Fortune 500 firms. Groups like the U.S. Chamber of Commerce that claim 96 percent of their members are small businesses with less than 100 employees, actually have 15 Fortune 1000 firms represented on their board of directors which have received federal small business contracts. The same thing is true for the U.S. Hispanic Chamber of Commerce. Several of the U.S. Hispanic Chamber of Commerce's corporate sponsors have received federal small business contracts. That's the real reason they are not supporting H.R. 2568, the Fairness and Transparency in Contracting Act of 2009. H.R. 2568 was proposed on May 21 by Congressman Hank Johnson (D - GA), and would stop the federal government from counting corporate giants towards its small business goals.
The National Federation of Independent Businesses (NFIB) claims to be "the voice of small business." In reality, NFIB primarily lobbies for the political agenda of Fortune 1000 firms. Even minority and women's groups are funded by Fortune 500 firms, and take their marching orders from those firms. Groups like the U.S. Hispanic Chamber of Commerce, the U.S. Women's Chamber of Commerce, and the National Small Business Association (NSBA) are funded by big business, and push the political agenda of corporate giants in America.
If you're not convinced, lets take a look at the facts. Since 2003, a series of federal investigations have been released which found that Fortune 500 firms and thousands of other large businesses have received billions of dollars in federal small business contracts. The Small Business Administration Office of Inspector General (SBA OIG) referred to the diversion of federal small business contracts to large corporations as, "One of the most important challenges facing the Small Business Administration [SBA] and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
The American Small Business League (ASBL) estimates up to $120 billion a year in federal small business contracts actually go to big businesses.
Since 2002, the story has been covered in virtually every major newspaper in the country, dozens of magazines, and in most of our nation's mainstream media outlets including CNN, ABC and CBS. Additionally, this issue has been the subject of hundreds of radio interviews, and hundreds of stories in Internet based publications. (ABC, http://www.asbl.com/abc_evening_news.wmv; CBS, http://www.asbl.com/cbs.wmv; CNN, http://www.asbl.com/showmedia.php?id=1170)
Now, take a look at the website for any group in America that you believe represents the best interest of small businesses. Try and find any mention of the issue at any time during the last seven years. Remember, over 500 stories in the media have covered the issue along with more than a dozen federal investigations. Despite the press, the federal investigations and thousands of business closures, you won't find anything.
You won't find any press releases calling for an end to the problem on the U.S. Chamber of Commerce's website. You will not find any mention of the issue anywhere on NFIB's website. You will not find any mention of the diversion of billions of dollars in federal small business contracts to Fortune 500 firms on the U.S. Hispanic Chamber of Commerce's website. There will be no mention of one of the largest challenges facing the entire federal government today on the U.S. Women's Chamber of Commerce website. Finally, if you examine the NSBA's website, you will not find any discussion of legislation they have written to address the issue, or lawsuits they have filled to try and end the rampant abuses against small businesses.
I would advise any small business that belongs to any of these groups to quit wasting your time and money, and drop out today. You have been duped.
The irrefutable truth is that a vast majority of supposed small business groups in America are shams. They are funded by, run by and for the benefit of Fortune 500 firms. The truth is, no major small business group in America will even mention the diversion of federal small business contracts to corporate giants. Look for yourself. If you disagree, send me the proof that I'm wrong to info@asbl.com.
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Tuesday, July 21, 2009
Rep. Johnson applauds American Small Business League for its Work on Small Business Contracting
FOR IMMEDIATE RELEASE
July 21, 2009
Petaluma, Calif. - Congressman Hank Johnson (D - GA), today issued a press release applauding the American Small Business League (ASBL) and its President Lloyd Chapman for their efforts as an advocate for small businesses, specifically businesses owned by minorities, women and veterans. (http://www.asbl.com/documents/hr2568%20_4_.pdf)
On May 21, Congressman Johnson proposed bipartisan legislation known as the "Fairness and Transparency in Contracting Act of 2009." H.R. 2568 would provide small businesses across the country with billions of dollars in additional contracting opportunities. Chapman originally drafted the concept for the bill with guidance from the nation's preeminent expert on contracting law, Professor Charles Tiefer.
"Lloyd Chapman and the American Small Business League deserve recognition for the hard work they have done trying to bring an end to the diversion of federal small business contracts to corporate giants," Johnson said. "Their efforts, along with the passage of H.R. 2568, will provide a significant boost to our nation's middle class economy."
For more than 7 years, the ASBL has tirelessly fought to stop widespread abuses, which have lead to the diversion of more than $100 billion a year in federal small business contracts to corporate giants.
In 2002, information provided by Chapman lead to the first Government Accountability Office (GAO) investigation into the diversion of federal small business contracts to large corporations. As a result of the investigation, the first congressional hearing into widespread abuses in small business contracting programs took place on May 7, 2003. Since then, more than 15 investigations have separately confirmed that Fortune 500 corporations and other companies, which exceed the government's small business size standards, are receiving billions of dollars in federal small business contracts. Chapman and the ASBL have been instrumental in spurring government inquiries into this issue. (http://www.asbl.com/documentlibrary.html)
In one such report, 5-15, the Small Business Administration (SBA) Office of Inspector General stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.asbl.com/documents/05-15.pdf)
Chapman has spent more than 20 years advocating for the rights of small businesses across the country. During that time, Chapman and the ASBL have won a series of federal lawsuits, which have forced the release of information that proves Fortune 500 corporations have received small business contracts. In its history, the ASBL has worked diligently to raise awareness about the diversion of federal small business contracts to large corporations and to advocate for small businesses across America.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
July 21, 2009
Petaluma, Calif. - Congressman Hank Johnson (D - GA), today issued a press release applauding the American Small Business League (ASBL) and its President Lloyd Chapman for their efforts as an advocate for small businesses, specifically businesses owned by minorities, women and veterans. (http://www.asbl.com/documents/hr2568%20_4_.pdf)
On May 21, Congressman Johnson proposed bipartisan legislation known as the "Fairness and Transparency in Contracting Act of 2009." H.R. 2568 would provide small businesses across the country with billions of dollars in additional contracting opportunities. Chapman originally drafted the concept for the bill with guidance from the nation's preeminent expert on contracting law, Professor Charles Tiefer.
"Lloyd Chapman and the American Small Business League deserve recognition for the hard work they have done trying to bring an end to the diversion of federal small business contracts to corporate giants," Johnson said. "Their efforts, along with the passage of H.R. 2568, will provide a significant boost to our nation's middle class economy."
For more than 7 years, the ASBL has tirelessly fought to stop widespread abuses, which have lead to the diversion of more than $100 billion a year in federal small business contracts to corporate giants.
In 2002, information provided by Chapman lead to the first Government Accountability Office (GAO) investigation into the diversion of federal small business contracts to large corporations. As a result of the investigation, the first congressional hearing into widespread abuses in small business contracting programs took place on May 7, 2003. Since then, more than 15 investigations have separately confirmed that Fortune 500 corporations and other companies, which exceed the government's small business size standards, are receiving billions of dollars in federal small business contracts. Chapman and the ASBL have been instrumental in spurring government inquiries into this issue. (http://www.asbl.com/documentlibrary.html)
In one such report, 5-15, the Small Business Administration (SBA) Office of Inspector General stated, "One of the most important challenges facing the Small Business Administration and the entire Federal government today is that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards." (http://www.asbl.com/documents/05-15.pdf)
Chapman has spent more than 20 years advocating for the rights of small businesses across the country. During that time, Chapman and the ASBL have won a series of federal lawsuits, which have forced the release of information that proves Fortune 500 corporations have received small business contracts. In its history, the ASBL has worked diligently to raise awareness about the diversion of federal small business contracts to large corporations and to advocate for small businesses across America.
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Contact:
Christopher Gunn
Communications Director
American Small Business League
cgunn@asbl.com
(707) 789-9575
Congress Considers Two Bills to End Contracting Abuses
FOR IMMEDIATE RELEASE
July 21, 2009
Petaluma, Calif. - Congress is considering two separate bills written to halt the diversion of billions of dollars in federal small business contracts to many of the largest firms in the world.
Since 2003, over a dozen federal investigations have been released which found thousands of firms such as British Aerospace (BAE), Rolls-Royce, AT&T, Wal-Mart, Xerox, Home Depot, General Dynamics, Raytheon, John Deere, Dell Computer and Dutch conglomerate Buhrmann NV have all received federal small business contracts.
The American Small Business League (ASBL) estimates that over that $100 billion a year in federal small business contracts actually go to Fortune 500 firms and other clearly large businesses. (www.asbl.com)
In Report 5-15, the Small Business Administration Office of Inspector General (SBA OIG) referred to the diversion of federal small business contracts to large corporations as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
In Report 5-16, the SBA OIG reported that in some cases large businesses received federal small business contracts because current policy allows large businesses to self certify their status as small businesses. The SBA OIG referred to the abuses as "False certifications." (http://www.asbl.com/documents/05-16.pdf)
In the Senate Committee on Small Business and Entrepreneurship, congressional leaders are considering S. 2300, the Small Business Contracting Revitalization Act, as a potential solution to longstanding abuses in federal small business contracting programs. That said, the bill would allow large businesses to continue to self certify, but would require them to do so annually.
In the House of Representatives, congressional leaders are considering H.R. 2568, the Fairness and Transparency in Contracting Act which eliminates self certification and puts the onus on federal contracting officials to ensure that Fortune 500 firms and other publicly traded firms no longer receive federal small business contracts. Current federal law stipulates that a small business must be "independently owned." Since publicly traded firms are publicly owned, they would not qualify as "independently owned" for the purpose of federal small business contracting programs. H.R. 2568 stipulates that federal contracting officials and prime contractors would no longer be able to report awards to publicly traded firms as small business awards.
The ASBL originally drafted H.R. 2568, which was introduced by Congressman Hank Johnson (D - GA) on May 21. To date, H.R. 2568 has received letters of support from more than 45 Chambers of Commerce and small business organizations around the country.
In a recent appearance on CNBC, U.S. Chamber of Commerce spokesman Giovanni Coratolo refused to back H.R. 2568. Fifteen Fortune 1000 firms represented on the U.S. Chamber of Commerce Board of Directors have received federal small business contracts.
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July 21, 2009
Petaluma, Calif. - Congress is considering two separate bills written to halt the diversion of billions of dollars in federal small business contracts to many of the largest firms in the world.
Since 2003, over a dozen federal investigations have been released which found thousands of firms such as British Aerospace (BAE), Rolls-Royce, AT&T, Wal-Mart, Xerox, Home Depot, General Dynamics, Raytheon, John Deere, Dell Computer and Dutch conglomerate Buhrmann NV have all received federal small business contracts.
The American Small Business League (ASBL) estimates that over that $100 billion a year in federal small business contracts actually go to Fortune 500 firms and other clearly large businesses. (www.asbl.com)
In Report 5-15, the Small Business Administration Office of Inspector General (SBA OIG) referred to the diversion of federal small business contracts to large corporations as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today." (http://www.asbl.com/documents/05-15.pdf)
In Report 5-16, the SBA OIG reported that in some cases large businesses received federal small business contracts because current policy allows large businesses to self certify their status as small businesses. The SBA OIG referred to the abuses as "False certifications." (http://www.asbl.com/documents/05-16.pdf)
In the Senate Committee on Small Business and Entrepreneurship, congressional leaders are considering S. 2300, the Small Business Contracting Revitalization Act, as a potential solution to longstanding abuses in federal small business contracting programs. That said, the bill would allow large businesses to continue to self certify, but would require them to do so annually.
In the House of Representatives, congressional leaders are considering H.R. 2568, the Fairness and Transparency in Contracting Act which eliminates self certification and puts the onus on federal contracting officials to ensure that Fortune 500 firms and other publicly traded firms no longer receive federal small business contracts. Current federal law stipulates that a small business must be "independently owned." Since publicly traded firms are publicly owned, they would not qualify as "independently owned" for the purpose of federal small business contracting programs. H.R. 2568 stipulates that federal contracting officials and prime contractors would no longer be able to report awards to publicly traded firms as small business awards.
The ASBL originally drafted H.R. 2568, which was introduced by Congressman Hank Johnson (D - GA) on May 21. To date, H.R. 2568 has received letters of support from more than 45 Chambers of Commerce and small business organizations around the country.
In a recent appearance on CNBC, U.S. Chamber of Commerce spokesman Giovanni Coratolo refused to back H.R. 2568. Fifteen Fortune 1000 firms represented on the U.S. Chamber of Commerce Board of Directors have received federal small business contracts.
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Friday, July 17, 2009
Obama Should Provide Financial Options to CIT Customers
By Lloyd Chapman
President, American Small Business League
CIT has acknowledged that negotiations with the Obama Administration have broken off. It seems clear the Obama Administration has decided CIT is not too big to fail.
What about the roughly one million small and medium businesses that depend on CIT for financing, should they also be allowed to fail? CIT has been the nation's number one SBA lender for nine years and the top lender to women, minorities and veteran entrepreneurs for six consecutive years. If the officials of the Obama Administration have decided not to save the nation's top small business lender, doesn't President Obama have an obligation to CIT's customers? Shouldn't he take immediate steps to ensure those firms are not forced into bankruptcy as a result of his administration's decision not to rescue CIT?
CIT's customers have worked many years to build their businesses and create jobs for millions of people. They have done nothing wrong and they do not deserve to have their businesses damaged or destroyed as a result of an arbitrary decision on the part of Washington bureaucrats.
If President Obama does not want to save CIT he should immediately offer a viable financial alternative to CIT's nearly one million customers. He should take appropriate steps to ensure that CIT's customers have workable government backed financial alternatives. To simply leave those firms to fend for themselves and say that other lenders will fill the void is unacceptable.
If the Obama Administration insists on letting CIT fail and they refuse to provide CIT's customers with reasonable and workable financial alternatives, an avalanche of bankruptcies will likely follow. There will almost certainly be a reverberation through the middle class economy that will make the recession worse and extend its duration.
President Obama should also consider the nearly one million CIT customers along with all of the employees of those firms and all the families of those employees. Conservatively the average CIT customer has approximately 15 employees. According to the U.S. Census Bureau the average American family is about 3.19 people. That comes out to 47.8 million people that could be adversely affected if President Obama lets CIT fail and refuses to offer some help to their customers.
So far President Obama's economic stimulus plan is not working for the vast majority of Americans. The 27 million small businesses that employ over 55 percent of the private sector work force, create over 97 percent of all net new jobs and are responsible for over 50 percent of the Gross Domestic Product (GDP) have received less than 1 percent of the overall 2.5 trillion in economic stimulus funds. Unemployment continues to rise as Goldman Sachs, one of President Obama's top campaign contributors, is reporting record profits. Dissatisfaction with President Obama's economic policies is growing daily across the country and on both sides of the isle in Congress.
President Obama should take a closer look at his administration's policies involving CIT and the over 40 million voters that could be impacted by those decisions.
2012 will be here before you know it. Maybe John Kerry and Al Gore could offer some advice on the difference a few million voters can make on Election Day.
President, American Small Business League
CIT has acknowledged that negotiations with the Obama Administration have broken off. It seems clear the Obama Administration has decided CIT is not too big to fail.
What about the roughly one million small and medium businesses that depend on CIT for financing, should they also be allowed to fail? CIT has been the nation's number one SBA lender for nine years and the top lender to women, minorities and veteran entrepreneurs for six consecutive years. If the officials of the Obama Administration have decided not to save the nation's top small business lender, doesn't President Obama have an obligation to CIT's customers? Shouldn't he take immediate steps to ensure those firms are not forced into bankruptcy as a result of his administration's decision not to rescue CIT?
CIT's customers have worked many years to build their businesses and create jobs for millions of people. They have done nothing wrong and they do not deserve to have their businesses damaged or destroyed as a result of an arbitrary decision on the part of Washington bureaucrats.
If President Obama does not want to save CIT he should immediately offer a viable financial alternative to CIT's nearly one million customers. He should take appropriate steps to ensure that CIT's customers have workable government backed financial alternatives. To simply leave those firms to fend for themselves and say that other lenders will fill the void is unacceptable.
If the Obama Administration insists on letting CIT fail and they refuse to provide CIT's customers with reasonable and workable financial alternatives, an avalanche of bankruptcies will likely follow. There will almost certainly be a reverberation through the middle class economy that will make the recession worse and extend its duration.
President Obama should also consider the nearly one million CIT customers along with all of the employees of those firms and all the families of those employees. Conservatively the average CIT customer has approximately 15 employees. According to the U.S. Census Bureau the average American family is about 3.19 people. That comes out to 47.8 million people that could be adversely affected if President Obama lets CIT fail and refuses to offer some help to their customers.
So far President Obama's economic stimulus plan is not working for the vast majority of Americans. The 27 million small businesses that employ over 55 percent of the private sector work force, create over 97 percent of all net new jobs and are responsible for over 50 percent of the Gross Domestic Product (GDP) have received less than 1 percent of the overall 2.5 trillion in economic stimulus funds. Unemployment continues to rise as Goldman Sachs, one of President Obama's top campaign contributors, is reporting record profits. Dissatisfaction with President Obama's economic policies is growing daily across the country and on both sides of the isle in Congress.
President Obama should take a closer look at his administration's policies involving CIT and the over 40 million voters that could be impacted by those decisions.
2012 will be here before you know it. Maybe John Kerry and Al Gore could offer some advice on the difference a few million voters can make on Election Day.
Wednesday, July 15, 2009
New Bill Could be Powerful Economic Stimulus for Middle Class Firms
More than two years ago, notable small business advocate Lloyd Chapman sat in a hotel in Durango, Colorado and drafted a bill to stop billions of dollars in fraud and abuse in federal small business contracting programs. On Thursday, May 21, Congressman Hank Johnson (D - GA) introduced H.R. 2568, the Fairness and Transparency in Contracting Act of 2009.
With a mind for change, Chapman drafted H.R. 2568 with Congressman Johnson and Senator Barbara Boxer, while relying heavily on the guidance of the nation's preeminent expert on contracting law, Professor Charles Tiefer. The bill was designed to preclude the federal government from counting publicly traded firms towards the government's 23 percent small business procurement goal. The Small Business Act requires that a small business be independently owned and operated; publicly traded firms do not qualify as independently owned.
Since 2003, more than 15 federal investigations have uncovered the diversion of billions of dollars in federal small business contracts to Fortune 500 corporations and thousands of other clearly large firms. The American Small Business League (ASBL) has estimated that every year more than $100 billion in federal contracts intended for small businesses are awarded to firms like British Aerospace (BAE), Rolls-Royce, Xerox, John Deere, Wal-Mart, Home Depot, Sherwin-Williams, Dell Computer and Dutch giant Buhrmann NV.
The ASBL maintains that H.R. 2568 is a free and easy solution to a problem that is costing America's middle-class $100 billion a year.
With the assistance of the ASBL, Chapman has garnered a wide swath of support for H.R. 2568 from members of the House of Representatives, chambers of commerce and major business organizations across the country. With a wave of support that includes key decision makers in the minority and veteran business communities, support for H.R. 2568 appears to be turning into a major movement for change in the government's contracting community.
Despite its potential major positive impact, H.R. 2568 has run into roadblocks from faux small business advocates, the U.S. Chamber of Commerce, and the U.S. Hispanic Chamber of Commerce. That said, the ASBL maintains that the U.S. Chamber of Commerce and the U.S. Hispanic Chamber of Commerce are wolves in sheep's clothing; lobbying for the interests of Fortune 500 corporations who are currently receiving billions of dollars in small business contracts, while at the same time masquerading as small business advocates. (http://www.asbl.com/showmedia.php?id=1432, http://www.asbl.com/showmedia.php?id=1425)
"The small business community needs to open its eyes to the deception of the U.S. Chamber of Commerce and the U.S. Hispanic Chamber of Commerce and get behind our movement towards change in federal small business contracting programs, "ASBL President Lloyd Chapman said. "H.R. 2568 is the first and only solution to the diversion of billions of dollars in small business contracts to corporate giants. It is not reasonable to allow this problem to continue while our nation's small businesses go belly-up and our economy continues to flounder."
Small businesses are the backbone of our nation's economy. Small businesses are responsible for more than 50 percent of our gross domestic product and over 90 percent of innovations. According to the U.S. Census Bureau, 90 percent of all U.S. firms have less than 20 employees and those firms are responsible for 97 percent of net new jobs. It is time for our small business leaders to embrace a real solution, H.R. 2568, to the diversion of federal small business contracts to large corporations. our jobs, families, homes, and businesses rely on it.
With a mind for change, Chapman drafted H.R. 2568 with Congressman Johnson and Senator Barbara Boxer, while relying heavily on the guidance of the nation's preeminent expert on contracting law, Professor Charles Tiefer. The bill was designed to preclude the federal government from counting publicly traded firms towards the government's 23 percent small business procurement goal. The Small Business Act requires that a small business be independently owned and operated; publicly traded firms do not qualify as independently owned.
Since 2003, more than 15 federal investigations have uncovered the diversion of billions of dollars in federal small business contracts to Fortune 500 corporations and thousands of other clearly large firms. The American Small Business League (ASBL) has estimated that every year more than $100 billion in federal contracts intended for small businesses are awarded to firms like British Aerospace (BAE), Rolls-Royce, Xerox, John Deere, Wal-Mart, Home Depot, Sherwin-Williams, Dell Computer and Dutch giant Buhrmann NV.
The ASBL maintains that H.R. 2568 is a free and easy solution to a problem that is costing America's middle-class $100 billion a year.
With the assistance of the ASBL, Chapman has garnered a wide swath of support for H.R. 2568 from members of the House of Representatives, chambers of commerce and major business organizations across the country. With a wave of support that includes key decision makers in the minority and veteran business communities, support for H.R. 2568 appears to be turning into a major movement for change in the government's contracting community.
Despite its potential major positive impact, H.R. 2568 has run into roadblocks from faux small business advocates, the U.S. Chamber of Commerce, and the U.S. Hispanic Chamber of Commerce. That said, the ASBL maintains that the U.S. Chamber of Commerce and the U.S. Hispanic Chamber of Commerce are wolves in sheep's clothing; lobbying for the interests of Fortune 500 corporations who are currently receiving billions of dollars in small business contracts, while at the same time masquerading as small business advocates. (http://www.asbl.com/showmedia.php?id=1432, http://www.asbl.com/showmedia.php?id=1425)
"The small business community needs to open its eyes to the deception of the U.S. Chamber of Commerce and the U.S. Hispanic Chamber of Commerce and get behind our movement towards change in federal small business contracting programs, "ASBL President Lloyd Chapman said. "H.R. 2568 is the first and only solution to the diversion of billions of dollars in small business contracts to corporate giants. It is not reasonable to allow this problem to continue while our nation's small businesses go belly-up and our economy continues to flounder."
Small businesses are the backbone of our nation's economy. Small businesses are responsible for more than 50 percent of our gross domestic product and over 90 percent of innovations. According to the U.S. Census Bureau, 90 percent of all U.S. firms have less than 20 employees and those firms are responsible for 97 percent of net new jobs. It is time for our small business leaders to embrace a real solution, H.R. 2568, to the diversion of federal small business contracts to large corporations. our jobs, families, homes, and businesses rely on it.
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